Gold Prices Plunge as Hawkish Fed and Soaring Energy Weigh Heavily
The Federal Reserve's hawkish stance and soaring energy prices have taken their toll on gold prices. After reaching a three-month high of $4,696.18 per ounce, driven by the expansion of long-term bond repurchases and the weakening US Dollar Index, spot gold prices have remained weak following hawkish remarks by Federal Reserve Chair Walsh at the Jackson Hole Global Central Bank Symposium.
According to Jim Wyckoff, a senior analyst at the American Gold Exchange, 'We are observing some technical selling pressure... Global bond yields are at multi-year highs. Consequently, all these factors are collectively weighing on the gold market.'
The subsequent escalation of tensions between the US and Iran has further dampened gold's performance in recent days.